^ 



flflMwol RqcoM 



Published in ihe Inlercsl of ihe American Hardwood Forests, the Products thereof, and Logging, Saw 

 Mill and Wood- Working Machinery, on the lOlh and 25lh of each Month, by 



THE HARDWOOD COMPANY 



Henry H. Gibson, Editor and Manager 

 Edwin W. Meeker"! 

 Hu Maxwell 



^Associate Editors 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street, CHICAGO 

 Telephones: Harrison 8086-8087-6088 



Vol. XXXVII 



CHICAGO, NOVEMBER 10, 1913 



No. 2 



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■V.x;'.a'.H:>^:<y;t;^i^t^t!>itiTOiTO!TO^5tW!WiTOti>^ 



Review and Outlook 



General Market Conditions 



IN ADDITION TO OTHER UNDESIRABLE INFLUENCES, 

 trade conditions in general throughout the past two weeks have 

 been affected more or less by a further circumstance, namely, the 

 political agitation which has been fairly keen pretty generally 

 throughout the middlewestern and eastern states. In New York 

 especially there has been a fight which will go down in history as 

 of extreme importance to that community. The importance of the 

 struggle was so fully recognized that it engaged the close attention 

 of the entire community with the result that it had some direct 

 bearing upon actual business conditions. However, New York was 

 but one instance of the many cases where politics has had its effect, 

 so that in the aggregate it can be said that the political turmoil 

 has added to the general uncertainty of the business situation. How- 

 ever, this influence is now a thing of the past and one more reef has 

 been safely essayed so that the ship of business is now a little nearer 

 to the safe harbor of normal business conditions. 



To say the least, reports are conflicting as to the general economic 

 condition of the country, business conditions in a broad way and the 

 lumber business specifically. Such men as J. J. Hill, former presi- 

 dent of the Great Northern Railroad and well-known as a leader in 

 a big business organization, have issued statements comparatively 

 recently tending to indicate that the very trend of business is wrong, 

 and that until we get headed in the right direction we cannot hope 

 for much more encouragement. On the other hand, we have prom- 

 ising reports from other industrial leaders and excellent statements 

 from various communities as to building operations and probable re- 

 turns. For instance at Memphis it is stated that bank clearings ex- 

 ceeded the clearings for October, 1912, by over $2,000,000, and that 

 actual shipments of cotton and prices received were most gratifying. 



We are warned, however, by those who are prone to affect a thor- 

 ough understanding of the deeper phases of business in general that 

 the recent developments in Mexico must be taken into account, and 

 that they will have a grave effect upon the progress of commerce 

 in this country. It is stated that in the event this country were 

 drawn into a conflict with Mexico it would cost a million or two 

 dollars a day, which would have to come from the people, with the 

 result that there would be less money available for ordinary business 

 and industrial activities. Unquestionably a conflict of this sort would 

 be an expensive one, but Hakdwood Record is of the opinion that 

 it would not have any very material bearing on the financial situation 

 of the country. In fact it is altogether likely that provision has 

 already been made to finance any effort of intervention that might 

 be made, without disrupting business. 



Generally speaking, there is not much change in the aspect of the 



country 's condition, and this can also be said of the lumber business. 

 The positions of the various woods continue to be about the same as 

 they were two weeks ago, and the demand from the various sources 

 is about in conformity to demand as last reported. It is unques- 

 tionably a fact that the comparative scarcity of money and the in- 

 disposition on the part of the bankers to finance industrial and busi- 

 ness propositions at a reasonable rate of interest is being felt in 

 building circles. This is especially true of speculative building, such 

 as flat buildings, two-family houses, etc., which of course really does 

 have a direct and noticeable effect upon the lumber business as far 

 as building lumber is concerned. 



It is unquestionably true that buying is off, but hardwood men as 

 a general thing are not reporting the same condition as are concerns 

 manufacturing and dealing in building lumber alone. In fact, as 

 far as values are concerned hardwoods continue to offer a solid front. 

 Prices have not improved nor are they likely to improve in the im- 

 mediate future, but with the present condition of stocks at the rnUls 

 and the entire likelihood that this condition will continue indefinitely, 

 there is no reason to beUeve that mUlmen will make any further 

 concessions. 



In the South favorable operating conditions have allowed the mill- 

 men to secure a very nice assortment of stock, but nowhere is there 

 any report that the supply is at all a justification of alarm, and in 

 fact, it is fairly generally reported that the actual amount of lumber 

 on hand is not above normal. 



The recent reports of the two northern associations offer excellent 

 proof that stock conditions at the northern miUs continue to be en- 

 tirely in accordance with the desires of northern operators. A fur- 

 ther proof is seen in the complaints of the wholesale element that 

 thoy cannot secure the stocks they want at the prices they are will- 

 ing to pay, which would indicate without much chance of doubt that 

 there is nothing remotely resembling a condition of panic among 

 northern operators. 



Recent developments aiming toward an organization of the gum 

 interests, and facts brought out at the recent conference of gum 

 manufacturers, has had a favorable effect upon the gum situation. 

 As heretofore reported, it was developed at the conference that the 

 actual stock on hand was aflfc nearly as alarming in its total quan- 

 tity as was expected. TIm 'prospects of an organization, the pur- 

 pose of which would be the broadening of the demand for gum, has 

 had a still further favorable effect upon the holders of red and sap 

 gum, and it is highly probable that with the definite orgaBizntion, 

 that in all likelihood will be effected on the fifteenth of this month, 

 actually a fact, the position of this most excellent wood will be still 

 further strengthened. It is off now, Imt the feeling is slightly more 



